Nissan, Renault Reportedly Near Agreement To Resolve Standoff

Automakers and alliance partners Nissan Motor Co. (NSANF.PK, NSANY.PK) and Renault SA (RNSDY.PK, RNSDF.PK, RNT.L) are nearing a deal to resolve a standoff over changes to Nissan’s corporate governance, the Wall Street Journal reported, citing people familiar with the plans. The decision is likely to come ahead of Nissan’s shareholder meeting on June 25.

Renault, which owns 43.4 percent of Nissan, earlier had informed its plans to abstain from voting at Nissan’s ordinary general meeting of shareholders related to the proposed amendments to its Articles of Incorporation.

At the upcoming annual meeting, Nissan was expecting to vote through a long-overdue transition from having statutory auditors to a governance system of three committees covering nominations, remuneration and audit.

As per the report, both companies had clashed over Renault’s desire for its chief executive, Thierry Bolloré, to sit on the audit committee.

The proposed changes require a two-thirds majority to pass.

The companies now agreed that Bolloré would receive the audit-committee post. The compromise plan, if completed, would enable Renault to vote in favor of the governance changes at the Nissan shareholder meeting.

Elon Musk Rules Out Any Demand Problem For Tesla’s Electric Vehicles

Tesla Inc.’s (TSLA) Chief Executive Officer Elon Musk said there is absolutely no demand problem for the company’s electric vehicles, and sales have in fact exceeded production.

TSLA closed Tuesday regular trading at $217.10, up $4.22 or 1.98 percent.

“I want to be clear – there is not a demand problem. Absolutely not,” Elon said at the shareholders’ meeting.

There have been concerns about reducing number of consumers willing to pay for its electric cars.

Elon affirmed that the company would achieve fully self-driving capability with recently made vehicles in 2020.

Musk also said the company expect to unveil its pickup truck by end of the summer of 2019.

Fitch Maintains Hong Kong’s Sovereign Ratings

Fitch Ratings maintained the sovereign ratings of Hong Kong citing strong public finance and resilient economy.

The agency affirmed the ratings at ‘AA+’ with a ‘stable’ outlook.

Fitch said the ‘AA+’ ratings were supported by its exceptionally strong public and external finances, high income levels, and a resilient and flexible economy.

However, the ratings were principally constrained by the territory’s deeper integration with lower-rated mainland China.

Despite active fiscal policy response to slowing economy, public finances are a clear strength, the agency noted. Fitch forecast a budget surplus of 0.8 percent of GDP in FY 2019-20.

The agency cautioned that Hong Kong’s economy is vulnerable to further escalations in US-China trade tensions. Nonetheless, the current account surplus is expected to remain strong this year, at around 5 percent of GDP.

Hong Kong’s GDP is expected to advance 1.6 percent in 2019, which is below the official 2-3 percent forecast range.